Payments Available To Some Who Lost Homes To Foreclosure

September 24, 2012

Borrowers who lost homes to foreclosure may be eligible for payments under the National Mortgage Foreclosure settlement, according to a release from Attorney General George Jepsen.

Eligible borrowers had their homes foreclosed on between Jan. 1, 2008, and Dec. 31, 2011, and had mortgages with one of the five largest mortgage servicers, all of which agreed to the settlement: Ally/GMAC, Bank of America, Citi, JPMorgan Chase or Wells Fargo.

The $25 billion settlement took effect in April, with $1.5 billion earmarked for payments to the 1.75 million borrowers who lost their homes to foreclosure during that period, according to the release. Payments will be based on the number of borrowers who participate and will be at least $840.

Jepsen's office began mailing the one-page claim form, along with instructions and other information, Monday to almost 9,000 eligible borrowers. The deadline to file a claim is Jan. 18, 2013.

"This payment is intended as partial compensation for the illegal conduct of the mortgage servicers," said Jepsen. "Unfortunately it will not help everyone, nor restore homes that were lost to foreclosure. But it represents help that otherwise would not have been available to borrowers, who can still pursue any legal claims they have against the servicers."

Those eligible borrowers who do not receive a packet, or for those with questions about the claim process, should e-mail administrator@nationalmortgagesettlement.com or call (866) 430-8358. The phone line is open Monday through Friday from 8 a.m. to 8 p.m.